SCHD vs VFORX: 3% overlap
Schwab U.S. Dividend Equity ETF and Vanguard Target Retirement 2040 share 3.3% of their portfolios by weight — computed as Σ min(wA, wB) over every holding both funds own.
Different holding dates. These holdings were published about 3 months apart — VFORX as of 2026-03-31, the rest through 2026-06-30. Each fund is compared using its most recent file, so any trading in between shows up as a difference.
You would hold two tickers and get the diversification of 2.0. Two funds that shared nothing would score 2.0; two identical funds score 1.0.
Top shared holdings
SCHD and VFORX hold 99 of the same securities. The ten contributing most to the overlap figure:
| Holding | in SCHD | in VFORX | Δ |
|---|---|---|---|
| UNH | 5.1% | 0.2% | 4.9% |
| HD | 3.4% | 0.2% | 3.1% |
| MRK | 3.9% | 0.2% | 3.7% |
| PG | 3.5% | 0.2% | 3.3% |
| CVX | 3.8% | 0.2% | 3.6% |
| KO | 4.0% | 0.2% | 3.8% |
| TXN | 5.9% | 0.2% | 5.7% |
| ALV | 0.2% | 0.1% | 0.1% |
| AMGN | 3.5% | 0.1% | 3.4% |
| QCOM | 6.7% | 0.1% | 6.6% |
Where SCHD and VFORX differ
Sector weights as a share of each fund, ordered by the size of the gap rather than the size of the sector — two funds that overlap heavily still usually diverge somewhere.
| Sector | SCHD | VFORX | Δ |
|---|---|---|---|
| Consumer Staples | 18.4% | 3.4% | +15.1pp |
| Health Care | 18.3% | 5.8% | +12.6pp |
| Energy | 14.6% | 2.3% | +12.2pp |
| Treasuries | 0.0% | 8.7% | −8.7pp |
| Information Technology | 12.9% | 21.6% | −8.7pp |
| Unclassified | 2.9% | 9.7% | −6.8pp |
| Financials | 8.8% | 12.7% | −3.9pp |
| MBS Pass-Through | 0.0% | 3.7% | −3.7pp |
Δ is SCHD minus VFORX, in percentage points. Sector data is not published by every issuer, so “Unclassified” is a real category rather than a gap in the table.
What each fund holds alone
2.9% of SCHD by weight, held in no part of VFORX.
94.8% of VFORX by weight, held in no part of SCHD.
A large count with a small weight is the usual shape: the positions one fund adds are typically its smallest ones.
Concentration and cost
| SCHD | VFORX | |
|---|---|---|
| Top 10 holdings | 43.6% | 23.9% |
| Positions held | 101 | 6 |
| Cost per $10,000 held, per year | $6 | $8 |
Cost is the expense ratio applied to $10,000; it excludes any brokerage commission, bid-ask spread or tax consequence. Figures are facts about the funds, not a suggestion about which to hold.
Frequently asked
How much do SCHD and VFORX overlap?
SCHD and VFORX overlap 3.3% by portfolio weight — largely distinct portfolios. They share 99 holdings. The figure comes from current issuer holdings files (SCHD as of 2026-05-31, VFORX as of 2026-03-31).
How is the overlap between SCHD and VFORX calculated?
As the sum of the smaller weight in each fund, over every holding both funds own: Σ min(wA, wB). If SCHD holds a stock at 6% and VFORX holds the same stock at 4%, 4% counts as shared. The result is bounded between 0% and 100%, and it is computed after looking through any fund-of-funds to the underlying holdings.
Is it redundant to hold both SCHD and VFORX?
That depends on your goals — we state facts, not advice. At 3.3% overlap, each fund still contributes meaningfully distinct exposure.
What does SCHD own that VFORX doesn't?
SCHD holds 101 positions and VFORX holds 6; 1 of SCHD's positions don't appear in VFORX at all, and they are 2.9% of SCHD by weight.
You probably hold more than two funds
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Related comparisons
Sources: issuer holdings files, SCHD as of 2026-05-31, VFORX as of 2026-03-31. Weights are fractions of each fund. Diagnostics, not advice.